§ 26.1-15.1-13 — Reinsurance

North Dakota § 26.1-15.1-13

• Jurisdiction: North Dakota
• Title 26.1: Insurance
• Ch. 26.1-15.1: Fraternal Benefit Societies

Text

1. A domestic society may by reinsurance agreement cede any individual risk or risks in
whole or in part to an insurer, other than another fraternal benefit society, having the
power to make reinsurance and authorized to do business in this state, or if not so
authorized, one which is approved by the commissioner, but no society may reinsure
substantially all of its insurance in force without first obtaining the written permission of
the commissioner. A society may take credit for the reserves on such ceded risks to
the extent reinsured, but no credit may be allowed as an admitted asset or as a
deduction from liability to a ceding society for reinsurance made, ceded, renewed, or
otherwise becoming effective after December 31, 1987, unless the reinsurance is

payable by the assuming insurer on the basis of the liability of the ceding society under
the contract or contracts reinsured without diminution because of the insolvency of the
ceding society.
2. Notwithstanding the limitation in subsection 1, a society may reinsure the risks of
another society in a consolidation or merger approved by the commissioner under
section 26.1-15.1-14.